Although DDS sales and profits have been pummeled by the slow-down in consumer demand for its mid-to-high-end goods during this recession, DDS has implemented large cost-saving measures such as closing 20 under-performing stores in 2008 and cutting 500 jobs, or 0.8% of its workforce. Working capital expenditures are expected to be $50 million less in 2008, and more store closures are expected in 2009. The company also has strong debt structure with ample cash availability, with debt of less than $26 million in the next two years, as of Nov. 15, 2008. Costs cuts and maintained good debt structure allow DDS to improve its performance to shield some of the effect of the economic downturn. [1]
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